Financial Crime World

ESTONIA URGED TO BOOST FIGHT AGAINST MONEY LAUNDERING AND TERRORISM FINANCING

The Council of Europe’s anti-money laundering body, MONEYVAL, has called on Estonia to strengthen its measures to combat money laundering and the financing of terrorism. According to a report published today, the country needs to improve its law enforcement efforts, reinforce the capacities and performance of the private sector, and enhance its understanding of risks associated with these crimes.

Key Findings

  • Estonia’s level of compliance with the Financial Action Task Force (FATF) recommendations as of May 2022 requires improvement.
  • The country needs to enhance its understanding of money laundering and terrorism financing risks, improve the effectiveness of investigations and prosecutions, and increase the confiscation of crime proceeds.

Areas for Improvement

Understanding Risks

  • Enhance understanding of money laundering and terrorism financing risks in various sectors, including the private sector.
  • Improve the capacity to identify and assess these risks.

Law Enforcement Efforts

  • Improve the effectiveness of investigations and prosecutions.
  • Increase efforts to seize, confiscate, and recover crime proceeds, particularly those moved abroad.

Private Sector Performance

  • Reinforce the capacities and performance of the private sector in preventing money laundering and terrorism financing.
  • Enhance proactive detection of money laundering and terrorism financing targets.

Progress and Recommendations

  • MONEYVAL praised Estonia’s coordination between its Financial Intelligence Unit (EFIU) and law enforcement authorities, but urged the EFIU to enhance proactive detection of money laundering and terrorism financing targets.
  • Law enforcement agencies were recommended to improve their efforts in investigating and prosecuting complex cases involving legal persons and company service providers.

Beneficial Ownership Information

  • Improve supervision of company service providers and increase transparency around beneficial ownership information on legal persons.
  • Ensure that this information is accurate, timely, and available to competent authorities.

International Cooperation

  • MONEYVAL praised Estonia for providing generally timely and constructive assistance in international cooperation requests.

Follow-Up Reporting Process

As a result of the report, Estonia will be subject to MONEYVAL’s enhanced follow-up reporting process. The country is expected to implement the recommended measures to improve its anti-money laundering and counter-terrorism financing regime.

By strengthening its measures to combat money laundering and terrorism financing, Estonia can better protect its financial system and prevent these crimes from being committed within its borders.